Posted in Finance, Accounting and Economics Terms, Total Reads: 310
Definition: Sale of Crown Jewels
Sale of Crown Jewels is basically a strategy tactic during Hostile Takeover bid in which the company which is being targeted starts losing its Crown Jewels ( most important and impressive assets). This makes the value of the company to fall and somehow can save the company from hostile takeover.
For example: Company PQR makes a bid to buy Company ABC.
ABC doesn't want itself to be bought by PQR. It refuses but PQR tries hostile takeover by approaching shareholders. Now ABC starts selling or losing its 'crown jewels' like employees, factories etc so that overall value of ABC falls in eyes of market and especially PQR.